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Germany is looking for gas deals with Algeria to diversify its supply, Berlin’s foreign minister said in Algiers on Tuesday, where he joined a business delegation visiting the North African country.
“We need to diversify…We need long-term gas contracts,” Johann Wadephul told German public broadcaster ZDF on the second day of his trip, as concerns grow in Germany that gas storage depots are only half full as autumn nears.
Wadephul said that he would meet with Energy Minister Mourad Adjal and that representatives of German companies looking for long-term contracts were travelling with him.
Noting Algerian deals with Spain and Italy, Wadephul said “I also hope that Germany will now be able to secure part of its gas supply here. That is our core interest.”
The EU’s top economy used to rely on cheap Russian gas but large deliveries stopped after Russia launched its full-scale invasion of Ukraine in 2022, dealing a heavy blow to German industry.
Berlin has since largely replaced Russian energy with Norwegian piped gas as well as American liquefied natural gas, though LNG prices are usually higher and more volatile than those from long-term piped gas deals.
The US-Israeli war on Iran has put further pressure on gas prices, leading to fears of a possible energy crunch this winter.
At the moment Germany’s gas storage is just 53% full compared to an EU average of 65%, according to figures from the Aggregated Gas Storage Inventory.
“Since there is no prospect of a quick end to both crises it’s clear that we need to diversify,” Wadephul said. “We need more suppliers.”
Following the gas crisis of 2022, the German government introduced mandatory minimum levels for gas storage in a bid to smooth out jumps in spot gas prices, with the state stepping in as a buyer if necessary.
The government has mandated that most gas storage facilities must be at least 80% full by 1 November.
Additional sources • AFP